On Tuesday, the Malta Development Bank (MDB) announced that it has signed an agreement with the European Investment Bank (EIB) through which the bank will be provided with a €30 million loan to finance “much-needed small-scale green investments on favourable conditions.”
Through this new agreement, MDB will provide access to credit to small and medium-sized enterprises (SMEs), mid-caps and local authorities willing to invest in projects that contribute to the fight against adverse climate change.
The EIB is the long-term lending institution of the European Union, owned by its member states. It provides long-term financing for sound investments that contribute to EU policy. The bank finances projects in four priority areas: infrastructure, innovation, climate and environment and SMEs.
MDB will pass on EIB’s favourable financing conditions and a longer repayment period to final beneficiaries, enabling entities that plan to invest in sustainable projects to make major financial savings. Through this agreement, the EIB will be leveraging on MDB’s market positioning, local outreach, and ability to channel funds in Malta.
Investments eligible under this programme include a wide range of green initiatives such as electric vehicle infrastructure, solar photovoltaic installations, energy efficiency in both public and private buildings as well as waste recycling projects.
MDB has also made a separate agreement which will enable it to benefit from EIB’s advisory services, developed under the Green Gateway programme launched by the EIB and the European Commission. This will help MDB build capacity in sourcing and assessing the eligibility of green projects while supporting them in reporting to the EIB.
“As Malta’s only promotional bank, MDB is committed to continue helping the local economy grow sustainably. Thanks to MDB’s collaboration with EIB, MDB will be in a better position to roll out schemes and support businesses and public sector entities to contribute towards Malta’s climate-related targets,” stated MDB Chairman Josef Bonnici.
On the other hand, EIB vice-president Gelsomina Vigliotti, stated that the advisory services provided under the Green Gateway will be “crucial to support MDB’s commitment to boosting the green transition of SMEs, local authorities and communities across the country.”
The forum was chaired by Chief Officer of Financial Stability and Statistics Alan Cassar
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